Buying Cheaper Than Renting Everywhere except London

IveSeenTheLight

Thrugelmir wrote: »

Thats over a 9% rental yield which is good in the current market.

You wouldn't get that yield around here on a similar priced property.

You just have to keep your eye's peeled, there are a lot of oppertunities out there.
You just have to notice them and be prepared to act fast.

I do also agree however that the areas in the UK are defferent to each other and that oppertunities are harder to come by (same with property prices)

the_ash_and_the_oak

It is true that buying is sometimes cheaper than renting! And sometimes, it is not true

IveSeenTheLight

the_ash_and_the_oak wrote: »

or renting for 4 years and mortgage for 21 years then selling and renting again for 7 years then buying again

A lot of possible permutations left out imo

I was keeping it simple in that after a straight 25 year period, the mortgage is paid off while the renter still rents

IveSeenTheLight

the_ash_and_the_oak wrote: »

Or buying a flat now and selling in 6 years to buy a semi vs renting for 4.5 years then buying semi etc

Is that directly comparable?
Why isn't it buy flat for 4.5 years, then sell and buy a semi and comparing it to renting for 4.5 years then buying the semi.

Why is staying in your own flat 1.5 years longer.

Not comparable in my opinion.

the_ash_and_the_oak

IveSeenTheLight wrote: »

Is that directly comparable?
Why isn't it buy flat for 4.5 years, then sell and buy a semi and comparing it to renting for 4.5 years then buying the semi.

Why is staying in your own flat 1.5 years longer.

Not comparable in my opinion.

ok sure. rent for 6 years and then buy semi, or 7 then buy semi

the_ash_and_the_oak

IveSeenTheLight wrote: »

I was keeping it simple in that after a straight 25 year period, the mortgage is paid off while the renter still rents

Fair point. Any ideas what happens to the person who rents for 3 years while it is cheaper to rent and then gets a 22 year mortgage?

the_ash_and_the_oak

I mean idk bout you but I'm kinda figuring that most people who might be thinking about buying but are choosing to rent for the time being aren't really thinking about renting forever - at a guess

Wookster

Buying Cheaper Than Renting Everywhere except London

Utter rubbish!

I'll dig deep and give you just one example. A family member in the West Midlands is considering a renovation to her £300,000 house. It would require them to move out for 3-6 months and equivalent accommodation would cost them in the region of £600 a month.

Where can you get a mortgage for £225k (assuming a 75% LTV) for £600/ month??

chucky

Wookster wrote: »

Utter rubbish!

I'll dig deep and give you just one example. A family member in the West Midlands is considering a renovation to her £300,000 house. It would require them to move out for 3-6 months and equivalent accommodation would cost them in the region of £600 a month.

Where can you get a mortgage for £225k (assuming a 75% LTV) for £600/ month??

you can't make this comparison with every property - there will be many that this won't apply to.

if it was more cheaper to rent than buy - there wouldn't be as many people into renting their properties and making money out of it...

abaxas

Just done an interesting calc.

Assuming a standard 5% mortage rate, 3% inflation and 3% after tax saving rate.

Over 25 years, we would lose £137,252 in the process. Ie worse off.

This figure doesnt take into account maintainence or any other ownship costs.